New Danish energy agreement

It is no news that Denmark is on the forefront in terms of clean technology and known for its ambitious climate and energy policy. Denmark has for long time taken the leadership in creating a global agenda addressing the challenge caused by climate changes. Just recently the Danish government has finished the energy agreement setting the framework for the policy on climate and energy up to 2020 and outlines the direction Denmark will take to become a fossil fuel free society by 2050.

In broad terms the agreement stipulates that:

• 12% less gross energy consumption by 2020 compared to 2006
• 50% wind power in electricity consumption in 2020
• Substantial investments in biogas and other sustainable energy sources

In order to reach these goals, the agreement specifies that a total of 3300 MW wind power will be build in the coming years. Hereof 1500 MW will be offshore wind farms, while the remaining capacity will be land and coastal wind farms. Furthermore, the agreement is incentivizing increased focus on biogas as a central source of energy. Funds are made available to subsidize investment and the transition to more biogas and other sustainable energy in the overall energy supply.

The parties behind the agreement represent 171 out of 179 in the parliament. This sends a signal to the business community that there is a strong political support behind the initiatives and that continuity can be expected. The agreement will push between $15 - $26 billion in new investments in sustainable energy and assures that Denmark will continue to be an attractive test market for next-gen technology.

Also, a month ago it was announced that Denmark is ranking first on the “Global Cleantech Innovation Index”. As an effort to maintain the international stronghold, research and development in clean technology will be strengthened with the agreement. Today, 10% of total Danish exports is within clean and energy technology, which also takes up 12% of total industrial production. And with a growing global market for these technologies, there should be rich opportunity for Danish cleantech companies to reach out to international markets to exploit technological advantages to solve energy problems.

Contact Innovation Center Denmark to explore opportunities for your company in Denmark or if you as a Danish cleantech company wants to look for opportunities in the US.

For more information about the agreement, read the press release from the Danish ministry of climate, energy and building here.